Govt gives nod to banking inquiry
The Government has asked the primary production select committee to open an inquiry into rural bank lending practices.
OPINION: If ever there was a need to look at rural bank lending, then this is it.
Federated Farmers' 30-page submission to the primary production select comittee last week makes a compelling case for an immediate independent inquiry into rural bank lending. There's clearly disparity between rural and urban bank lending practices.
What's shocking is that changes made to Reserve Bank (RBNZ) rules would cost farmers even more than He Waka Eke Noa (HWEN), the abandoned primary industry partnership to reduce emissions.
Feds refer to a briefing to the previous Minister of Finance where it is noted banks claimed the changes to RBNZ rules would result in a 0.5% and 1.2% increase in interest rates. To put a 0.5% to 1.2% increase in rural lending costs in context, with total rural lending of approximately $62 billion, this equates to an additional cost of $310 million to $720 million per annum of interest costs. HWEN policy was forecast to levy $220 to $290 million from the sector by 2030.
Rising interest rates combined with high inflation are putting many farmers under huge financial pressure. Some are even being forced out of the industry.
The primary production select committee is investigating rural banking. While this is a good start, what farmers need is a full-scale inquiry undertaken by MPs.
A survey the Feds did of farmers in May this year found farmer satisfaction with their banks was at an all-time low, and the number of farmers reporting they had come under undue pressure from their bank is at an all-time high.
The Commerce Commission has begun a market study on personal banking. Frustratingly, however, rural lending is outside the scope of the Commission study.
It's time for politicians to give rural businesses and rural families some certainty about the fairness of the interest rates they're paying and the services that they're getting.
An independent rural banking inquiry is the way to go.
A record 13 dairy farms supplying milk to low-carbon dairy processor, Miraka qualified for an extra premium of 20c/kgMS this season.
A sustainable merino wool replacement for rockwool and peat used in greenhouse growing won the Prototype Award at the National Fieldays innovation awards last night.
A major focus for Fieldays in recent years has involved responding to the agricultural sector’s pressing challenges of environmental sustainability, climate mitigation and food production.
Farmers are looking forward to less red tape and delay around approval processes for new agricultural and horticultural products.
The a2 Milk Company (a2MC) is providing $440,000 to 18 farms across Southland, Canterbury and the Waikato in the third round of its a2 Farm Sustainability Fund in New Zealand.
Nestle New Zealand has scooped the Supreme Site Award at this year’s National Fieldays being held at Mystery Creek in Hamilton.
OPINION: If the old saying that ‘political leaders are the reflection of our society’ is true, we need to have…
OPINION: At a recent speaking engagement, Brendan Lindsay, cashed-out founder of Sistema Plastics opined that in his experience “banks are…